In recent years the phenomenal growth of the use of credit cards, automatic bank teller machines, identification cards, and the like has alleviated the problems associated with individuals carrying large amounts of cash and valuables on their persons. Unfortunately, these newly created card devices have engendered new problems unique to their existence. Although credit cards (this term will be used generically herein to encompass all forms of credit, identification, and machine readable cards) are not as anonymous and transferable as cash, they are still subject to unauthorized use due to loss, theft, and forgery. Indeed, in some situations credit card fraud can be more egregious than loss of cash or valuables, due to the great amount of wealth which may be called forth and misappropriated from the criminal misuse of one small plastic card.
In its typical form a credit card comprises a rectangular, pocket-size piece of laminated plastic which bears the name of the issuing authority or institution, the name of the individual who is the authorized user, an identifying number, and perhaps an expiration date. This information is usually embossed so that the indicia may be transferred to a credit invoice by direct impression. Most credit cards also include a space for the authorized person's signature, so that the signature may be compared with the user's signature at the point of sale or credit. However, this system obviously provides the opportunity for a dexterous criminal to copy and forge the signature of the authorized individual. indeed, even when a photo of the authorized person is provided on the card, forgery of the entire, including the photo and signature, has frequently been accomplished by talented criminals.
A more recent innovation has been the inclusion of a magnetic strip on one surface of the card, the strip being encoded with bearer data such as an authorization number which is not indicated outwardly on the card. Some criminals with access to card readers have been able to scan the magnetic strip of a stolen card to determine the authorization number. More often, however, the authorized individual writes the number on a card or paper accompanying the credit card, so that the number is not forgotten. In this way the criminal may gain access to the authorizing number, and thus to the credit resources of the individual.